1. Above is a simplified circular-flow diagram for the economy of Micronia. Government purchases of goods and services - $150 Government borrowing = $60 Government Taxes - $100 Government trarefers = $10 Private savings - $200 Households Consumer Wages, profit, spending = $510 interest runt - $900 Markets for goods Factor Financial and services markets markets Gross Wages, profit domestic interest, Borrowing and product rent - $800 stock issues by Firms firms - $110 Investment spending = $110 Forvign borrowing Exports - $50 and sales of stock - $130 Rast of world Imports - $20 Foreign lending and purchases of stock - $100 3) What is the value of GDP in Micronia? b) What is the value of net exports? (i.e. export-import) c) What is de value of disposable income? (in this example Income+ TransfersTaxes) d) Does the total flow of money out of households-the sum of taxes paid andconsumer spending-equal to the total flow of money into households? e) How does the government of Micronia finance tis purchases of goods and services